Applications for Canada Recovery Benefit now open!

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The Canada Recovery Benefit (CRB) is now open for applications.

As described on the Canada.ca website, the CRB gives income support to employed and self-employed individuals who are directly affected by COVID-19 and are not entitled to Employment Insurance (EI) benefits. The CRB is administered by the Canada Revenue Agency (CRA).

This program replaces the Canada Emergency Response Benefit (CERB) and, if eligible, provides $1,000 ($900 after taxes withheld) for a 2-week period.

If your situation continues past 2 weeks, you will need to apply again. You may apply up to a total of 13 eligibility periods (26 weeks) between September 27, 2020 and September 25, 2021.

Eligibility

To be eligible for the CRB, you must meet all the following conditions for the 2-week period you are applying for:

  • During the period you’re applying for:

    • you were not working for reasons related to COVID-19 OR

    • you had a 50% reduction in your average weekly income compared to the previous year due to COVID-19

  • You did not apply for or receive any of the following:

    • Canada Recovery Sickness Benefit (CRSB)

    • Canada Recovery Caregiving Benefit (CRCB)

    • short-term disability benefits

    • workers’ compensation benefits

    • Employment Insurance (EI) benefits

    • Québec Parental Insurance Plan (QPIP) benefits

  • You were not eligible for EI benefits

  • You reside in Canada

  • You were present in Canada

  • You are at least 15 years old

  • You have a valid Social Insurance Number (SIN)

  • You earned at least $5,000 in 2019, 2020, or in the 12 months before the date you apply from any of the following sources:

    • employment income (total or gross pay)

    • net self-employment income (after deducting expenses)

    • maternity and parental benefits from EI or similar QPIP benefits

  • You have not quit your job or reduced your hours voluntarily on or after September 27, 2020, unless it was reasonable to do so

  • You were seeking work during the period, either as an employee or in self-employment

  • You have not turned down reasonable work during the 2-week period you’re applying for

You need all of the above to be eligible for the CRB.

APPLY FOR THE CRB

New Canada Emergency Rent Subsidy | Wage Subsidy extended | CEBA additional $20,000 loan

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On October 9th, the Federal Government announced the new Canada Emergency Rent Subsidy (CERS), the extension of the Canada Emergency Wage Subsidy (CEWS) and additional loans through the Canada Emergency Business Account (CEBA).

New Canada Emergency Rent Subsidy for businesses

The Canada Emergency Rent Subsidy (CERS) is the replacement for the Canada Emergency Commercial Rent Assistance (CECRA).

When launched, the new program will allow businesses to apply directly for rent relief through CRA. The original CECRA faced criticism because it required landlords to apply for the assistance and absorb a 25% reduction in rent which may explain the low uptake.

Prime Minister Justin Trudeau stated that the new rent subsidy will be available for businesses that continue to experience revenue decline due to COVID-19. From Canada.ca:

  • The new Canada Emergency Rent Subsidy, which would provide simple and easy-to-access rent and mortgage support until June 2021 for qualifying organizations affected by COVID-19. The rent subsidy would be provided directly to tenants, while also providing support to property owners. The new rent subsidy would support businesses, charities, and non-profits that have suffered a revenue drop, by subsidizing a percentage of their expenses, on a sliding scale, up to a maximum of 65 per cent of eligible expenses until December 19, 2020. Organizations would be able to make claims retroactively for the period that began September 27 and ends October 24, 2020.

  • A top-up Canada Emergency Rent Subsidy of 25 per cent for organizations temporarily shut down by a mandatory public health order issued by a qualifying public health authority, in addition to the 65 per cent subsidy. This follows a commitment in the Speech from the Throne to provide direct financial support to businesses temporarily shut down as a result of a local public health decision.

Allowing businesses to apply for the rent subsidy directly will make obtaining support for those in need as straightforward and simple as possible.

The new CERS is set to be available until June 2021.

Canada Emergency Wage Subsidy extended to June 2021

The Canada Emergency Wage Subsidy (CEWS) will continue to provide wage relief for employers until June 2021. As well, the subsidy will remain at the current rate of up to a maximum of 65% of eligible wages until December 19th and will not decrease on a sliding scale as previously planned.

Canada Emergency Business Account – additional $20,000 interest-free loan

The Canada Emergency Business Account (CEBA) will be expanded to provide an additional $20,000 loan with $10,000 forgivable if repaid by December 31, 2022. Additionally, the application deadline for CEBA is being extended to December 31, 2020. Businesses applying for the loan will be required to prove they have faced income loss caused by COVID-19.

See the full news release at canada.ca

Applications for Canada Recovery Sickness Benefit and Caregiving Benefit starts today!

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Starting October 5, 2020, the Government of Canada will be accepting online applications for the Canada Recovery Sickness Benefit (CRSB) and the Canada Recovery Caregiving Benefit (CRCB).

From Canada.ca:

Canada Recovery Sickness Benefit (CRSB)

The Canada Recovery Sickness Benefit (CRSB) gives income support to employed and self-employed individuals who are unable to work because they’re sick or need to self-isolate due to COVID-19, or have an underlying health condition that puts them at greater risk of getting COVID-19. The CRSB is administered by the Canada Revenue Agency (CRA).

If you’re eligible for the CRSB, you can receive $500 ($450 after taxes withheld) for a 1-week period.

If your situation continues past 1 week, you will need to apply again. You may apply up to a total of 2 weeks between September 27, 2020 and September 25, 2021.

Eligibility:

To be eligible for the CRSB, you must meet all the following conditions for the 1-week period you are applying for:

  • You are unable to work at least 50% of your scheduled work week because you’re self-isolating for one of the following reasons:

    • You are sick with COVID-19 or may have COVID-19

    • You are advised to self-isolate due to COVID-19

    Who can advise you to self-isolate

    • You have an underlying health condition that puts you at greater risk of getting COVID-19.

    Who can advise you to stay at home due to your health condition

  • You did not apply for or receive any of the following for the same period:

    • Canada Recovery Benefit (CRB)

    • Canada Recovery Caregiving Benefit (CRCB)

    • short-term disability benefits

    • workers’ compensation benefits

    • Employment Insurance (EI) benefits

    • Québec Parental Insurance Plan (QPIP) benefits

  • You reside in CanadaDefinition

  • You were present in Canada

  • You are at least 15 years old

  • You have a valid Social Insurance Number (SIN)

  • You earned at least $5,000 (before deductions) in 2019, 2020, or in the 12 months before the date you apply from any of the following sources:

    • employment income

    • self-employment income

    • maternity and parental benefits from EI or similar QPIP benefits

    What counts towards the $5,000

  • You are not receiving paid leave from your employer for the same period

You need all of the above to be eligible for the CRSB.

See full details of CRSB and apply

Canada Recovery Caregiving Benefit (CRCB)

The Canada Recovery Caregiving Benefit (CRCB) gives income support to employed and self-employed individuals who are unable to work because they must care for their child under 12 years old or a family member who needs supervised care. This applies if their school, regular program or facility is closed or unavailable to them due to COVID-19, or because they’re sick, self-isolating, or at risk of serious health complications due to COVID-19. The CRCB is administered by the Canada Revenue Agency (CRA).

If you’re eligible for the CRCB, your household can receive $500 ($450 after taxes withheld) for each 1-week period.

If your situation continues past 1 week, you will need to apply again. You may apply up to a total of 26 weeks between September 27, 2020 and September 25, 2021.

Eligibility:

To be eligible for the CRCB, you must meet all the following conditions for the 1-week period you are applying for:

  • You are unable to work at least 50% of your scheduled work week because you are caring for a family member

  • You are caring for your child under 12 years old or a family member who needs supervised care because they are at home for one of the following reasons:

    • Their school, daycare, day program, or care facility is closed or unavailable to them due to COVID-19

    • Their regular care services are unavailable due to COVID-19

    • The person under your care is:

      • sick with COVID-19 or has symptoms of COVID-19

      • at risk of serious health complications if they get COVID-19, as advised by a medical professional

      • self-isolating due to COVID-19

    Who can advise a person under your care to self-isolate

  • You did not apply for or receive any of the following for the same period:

    • Canada Recovery Benefit (CRB)

    • Canada Recovery Sickness Benefit (CRSB)

    • short-term disability benefits

    • workers’ compensation benefits

    • Employment Insurance (EI) benefits

    • Québec Parental Insurance Plan (QPIP) benefits

  • You reside in CanadaDefinition

  • You were present in Canada

  • You are at least 15 years old

  • You have a valid Social Insurance Number (SIN)

  • You earned at least $5,000 (before deductions) in 2019, 2020, or in the 12 months before the date you apply from any of the following sources:

    • employment income

    • self-employment income

    • maternity and parental benefits from EI or similar QPIP benefits

    What counts towards the $5,000

  • You are the only person in your household applying for the benefit for the weekWhat is considered a household for this benefit

  • You are not receiving paid leave from your employer for the same period

You need all of the above to be eligible for the CRCB.

See full details of CRCB and apply

Canada Recovery Benefit (CRB)

The CRB provides $500 per week for up to 26 weeks for workers who have stopped working or had their income reduced by at least 50% due to COVID-19, and who are not eligible for Employment Insurance (EI).

Applications will open on October 12

Insurance Planning for Business Owners

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For business owners, making sure your business is financially protected can be overwhelming. Business owners face a unique set of challenges when it comes to managing risk. Insurance can play an important role when it comes to reducing the financial impact on your business in the case of uncontrollable events such as disability, critical illness or loss of a key shareholder or employee.

This infographic addresses the importance of corporate insurance.

The 4 areas of  insurance a business owner should take care of are:

  • Health

  • Disability

  • Critical Illness

  • Life

Health: We are fortunate in Canada, where the healthcare system pays for basic healthcare services for Canadian citizens and permanent residents. However, not everything healthcare related is covered, in reality, 30% of our health costs* are paid for out of pocket or through private insurance such as prescription medication, dental, prescription glasses, physiotherapy, etc.

For business owners, offering employee health benefits make smart business sense because health benefits can form part of a compensation package and can help retain key employees and attract new talent.

For business owners that are looking to provide alternative health plans in a cost effective manner, you may want to consider a health spending account.

Disability: Most people spend money on protecting their home and car, but many overlook protecting their greatest asset: their ability to earn income. Unfortunately one in three people on average will be disabled for 90 days or more at least once before the age of 65.

Consider the financial impact this would have on your business if you, a key employee or shareholder were to suffer from an injury or illness. Disability insurance can provide a monthly income to help keep your business running.

Business overhead expense insurance can provide monthly reimbursement of expenses during total disability such as rent for commercial space, utilities, employee salaries and benefits, equipment leasing costs, accounting fees, insurance premiums for property and liability, etc.

Key person disability insurance can be used to provide monthly funds for the key employee while they’re disabled and protect the business from lost revenue while your business finds and trains an appropriate replacement.

Buy sell disability insurance can provide you with a lump sum payment if your business partner were to become totally disabled. These funds can be used to purchase the shares of the disabled partner, fund a buy sell agreement and reassure creditors and suppliers.

Critical Illness: For a lot of us, the idea of experiencing a critical illness such as a heart attack, stroke or cancer can seem unlikely, but almost 3 in 4 (73%) working Canadians know someone who experience a serious illness. Sadly, this can have serious consequences on you, your family and business, with Critical Illness insurance, it provides a lump sum payment so you can focus on your recovery.

Key person critical illness insurance can be used to provide funds to the company so it can supplement income during time away, cover debt repayment, salary for key employees or fixed overhead expenses.

Buy sell critical illness insurance can provide you with a lump sum payment if your business partner or shareholder were to suffer from a critical illness. These funds can be used to purchase the shares of the partner, fund a buy sell agreement and reassure creditors and suppliers.

Life: For a business owner, not only do your employees depend on you for financial support but your loved ones do too. Life insurance is important because it can protect your business and also be another form of investment for excess company funds.

Key person life insurance can be used to provide a lump sum payment to the company on death of the insured so it can keep the business going until you an appropriate replacement is found. It can also be used to retain loyal employees by supplying a retirement fund inside the insurance policy.

Buy sell life insurance can provide you with a lump sum payment if your business partner or shareholder were to pass away. These funds can be used to purchase the shares of the deceased partner, fund a buy sell agreement and reassure creditors and suppliers.

Loan coverage life insurance can help cover off any outstanding business loans and debts.

Reduce taxes & diversify your portfolio, often life insurance is viewed only as protection, however with permanent life insurance, there is an option to deposit excess company funds not needed for operations to provide for tax-free growth (within government limits)  to diversify your portfolio and reduce taxes on passive investments.

Talk to us about helping making sure you and your business are protected.

Contact Us